Exemptions

Exemptions help you keep your property when filing for bankruptcy. We help you decide if you should file for bankruptcy and how to keep your property.

How to tell if you have property that is not protected by an exemption

Schedule A/B lists everything you own. Schedule C lists all everything you own that is protected by an exemption. Here is how you can tell what’s protected by an exemption by looking at your Schedule C, complete with an example to illustrate what it means when something is only partially exempt.

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Overview of the 7 Most Commonly Used Bankruptcy Exemptions

Bankruptcy exemptions protect a filer’s property to ensure they are able to take full advantage of their fresh start. While the available exemptions vary depending on the state you live in, there are certain types of common bankruptcy exemptions that are generally found in all exemption schemes. This article will provide an overview of the 7 most common types of bankruptcy exemptions and how they protect the filer’s property in a Chapter 7 bankruptcy.

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What are the New Jersey Bankruptcy Exemptions?

Every state has its own set of bankruptcy exemptions. There is also a set of federal bankruptcy exemptions contained in the United States Bankruptcy Code. Several states, including New Jersey, allow residents to choose between taking the New Jersey bankruptcy exemptions and the federal exemptions. It’s important to note that you have to pick one set of exemptions and stick to it, you can’t pick and choose from both New Jersey exemptions and federal, rather go with the set that gives you the most protection. If you decide to go with the state exemptions you can also use the federal nonbankruptcy exemptions as a supplement, so long as you meet the qualifications.

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What are the Idaho Bankruptcy Exemptions?

Every state has its own set of exemptions for bankruptcy cases. There is also a set of federal exemptions that are listed in the United States Bankruptcy Code. Each state gets to decide if they want to offer the federal bankruptcy exemptions as an alternative choice to their state exemptions. Idaho has opted out of the federal exemptions, which means that residents in Idaho are limited to using Idaho state exemptions in any bankruptcy case. Filers in Idaho can, however, supplement the state exemptions with the federal nonbankruptcy exemptions that protect benefits like federal laws protecting social security benefits from garnishment.

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What are the Nebraska Bankruptcy Exemptions?

Every state has its own set of bankruptcy exemptions under state laws. There is also a set of federal bankruptcy exemptions which can be found in the United States Bankruptcy Code. Some states allow their residents to choose between the state and federal exemptions. Nebraska, however, does not offer the choice to its residents. If you have lived in Nebraska for at least the last two years and you are filing for bankruptcy, you are limited to using the Nebraska state exemptions, but you can supplement those with any federal nonbankruptcy exemptions that apply. These additional exemptions are available whether or not you are in a bankruptcy case.

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Is my stimulus money at risk if I file bankruptcy before I get the funds?

The funds you’re expecting will be an asset of your bankruptcy estate. There is nothing in the CARES Act, the relief bill that created the stimulus, that suggests otherwise. This means the only way to protect the money is through a wildcard exemption.

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What are the New York Bankruptcy Exemptions?

New York does allow consumers filing bankruptcy to use the federal bankruptcy exemptions. The Bankruptcy Code has implemented rules that require consumers to either choose either the federal or state exemptions meaning, they can’t use both at the same time. Moreover, you will need to have lived in New York for at least 730 days (two years) to be able to use the New York exemptions. Congress implemented this rule to stop people from gaming the system and moving to a different state just to be able to use more generous exemptions.

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What are the Ohio Bankruptcy Exemptions?

Although some states in the country allow people to choose between the federal bankruptcy exemptions and state exemptions, this option is not available if you are filing bankruptcy in Ohio. Ohio, like many other states, has its own bankruptcy exemptions. If you’ve lived in Ohio for at least 2 years when filing your case, you have to use the Ohio bankruptcy exemptions and can’t use federal exemptions Note that one great advantage of using state bankruptcy exemptions in Ohio is that you will have an additional list of bankruptcy exemptions that might be available to you. So, while you have to use Ohio bankruptcy exemptions if you file a bankruptcy in the state, you can use the federal nonbankruptcy exemptions as well. These exemptions protect certain qualifying property, like federal and military retirement benefits.

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What are the Wisconsin Bankruptcy Exemptions?

You will find a list of available exemptions in the federal Bankruptcy Code, or you may instead decide to use exemptions available under Wisconsin law. However, keep in mind that each state has the option of “opting out” of this scheme. Bankruptcy filers in an opt-out state may only use their state exemptions and not use the federal exemptions. As Wisconsin hasn’t opted out of the choice between state exemptions and federal exemptions, Wisconsinites who file bankruptcy can choose between federal bankruptcy exemptions or state exemptions. Actually, you will be happy to know that Wisconsin is one of the few US states that allows filers this choice, and this is a real advantage if you are filing Chapter 7 in the state. However, keep in mind that you are not allowed to cherry-pick exemptions from both lists; you can select only one set of exemptions. If you’re using Wisconsin law to exempt your property, you can also use the federal nonbankruptcy exemptions, if applicable. This also means that if you’re filing for bankruptcy in the state, you should review both sets of exemptions and then choose what scheme can best protect your property. Hiring an attorney can be helpful in this respect.

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What are the Michigan Bankruptcy Exemptions?

If you are considering filing bankruptcy in Michigan, you will probably have come across the terms federal bankruptcy exemptions and state exemptions. Many states in the US allow people to choose between the federal exemptions and state exemptions while others don’t. Michigan allows residents to choose between the federal bankruptcy exemptions and state exemptions. This is why you have more flexibility. However, keep in mind that you can’t protect property by using both sets of exemptions. You’ll have to pick the system that works best for you. A bankruptcy attorney can help you decide which exemptions are best for you. If you decide to use Michigan exemptions, then the federal nonbankruptcy exemptions will also be available to you. Spouses in Michigan who file a joint bankruptcy may double most, but not all, of the exemption amounts on the state exemption list. For example, Michigan spouses are restricted to one homestead exemption.

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What are the Virginia Bankruptcy Exemptions?

Exempt property, such as a car or trade implements, is free of the claims of your creditors and can’t be taken by your trustee to be liquidated. Laws in Virginia determine the types as well as the amount of exempt property. While the U.S. Bankruptcy Code applies in almost the same way throughout the country, there is one important exception you should be aware of; and that is the ability to protect your assets through bankruptcy exemptions. In many instances, the federal laws govern the bankruptcy process exclusively, but, in the context of bankruptcy exemptions, federal law allows each state to determine whether they would like to use the bankruptcy exemptions delineated under the federal law or create and use their own. Each state in the US has the choice of applying the federal bankruptcy exemptions or using their own list of asset values that will be protected or exempt from creditors in bankruptcy. While some states in the country allow people to choose between exemptions drafted by state lawmakers and federal exemptions, residents of Virginia who file for bankruptcy can only use the state exemptions expressly provided for in the state law. In Virginia, you are not permitted to use the federal bankruptcy exemptions. You can use Virginia’s state exemptions and, if applicable, the federal nonbankruptcy exemptions.

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What are the Illinois Bankruptcy Exemptions?

If you have done a bit of research on bankruptcy cases in Illinois or exempt property, you will probably have come across the terms federal bankruptcy exemptions and state exemptions. Many states in the US allow people to choose between the federal exemptions and state exemptions. However, you don’t have that option in Illinois. In Illinois, you are not permitted to use the federal bankruptcy exemptions if you’ve lived in the state for at least 2 years when you file bankruptcy. Fortunately, Illinois has generous bankruptcy exemptions that can protect your property.

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What are the Texas Bankruptcy Exemptions?

If you live in Texas, you are lucky. It is one of the best states in the US in which to file bankruptcy. Here is why you will benefit from filing bankruptcy in Texas. Some US states, including Texas, allow filers to choose between the federal bankruptcy exemptions and the state exemptions. However, it has to be one or the other—if you opt for the Texas state exemptions, you cannot cherry-pick specific exemptions off the federal bankruptcy exemptions, and vice versa.

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What are the Florida Bankruptcy Exemptions?

If you have done some research on bankruptcy cases or exempt property, you will probably have come across the terms federal bankruptcy exemptions and state exemptions. Although the federal Bankruptcy Code has a list of bankruptcy exemptions, these exemptions aren’t available in Florida. In Florida, you are not permitted to use the federal bankruptcy exemptions. Florida residents have to use the state exemptions. Also, you can use the federal nonbankruptcy exemptions contained in the federal law if you have any assets covered by them.

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What are the California Bankruptcy Exemptions?

If you are a California resident, you can’t protect your possessions, like bank deposits and commercial vehicles, under the Bankruptcy Code’s exemptions. So, Californians filing bankruptcy have to use California exemption law. Some states permit filers to choose between a set of federal bankruptcy exemptions and the state exemption system. However, California isn’t one of them. California is called an “opt-out” state, which means federal bankruptcy exemptions are not available to filers in the state.

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Spending money before filing Chapter 7 bankruptcy

While it seems strange, sometimes folks in need of bankruptcy relief have money that they need to spend before their case can be filed to maximize their fresh start by getting set up in the best possible way. Even if you don’t have a bunch of money to spend before filing your case, it’s important to know what to avoid in the months leading up to your filing, so you don’t inadvertently make your case more complicated than it needs to be.

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Tax Credits and Bankruptcy

Tax credits reduce the total tax owed by the individual or family claiming the credit. Many low-income families have all or a portion of such a tax credit refunded to them once their tax return is filed and their eligibility to claim the credit confirmed by the Internal Revenue Service. This article will review some of the most commonly used tax credits available to low-income individuals and how these credits are treated in a Chapter 7 bankruptcy.

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What are the federal nonbankruptcy exemptions and why does it matter?

The federal nonbankruptcy exemptions are federal exemption laws that exist outside of the Bankruptcy Code and protect property from creditors even if no bankruptcy case has been filed. This article will explore how federal nonbankruptcy exemptions can protect your rights in a bankruptcy case and conclude with a brief overview of some of the most commonly used federal nonbankruptcy exemptions.

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I had a car accident after filing a Chapter 7 bankruptcy. What do I do now?

While a property settlement from the insurance company may have to be paid to the trustee, any personal injury settlement you’re entitled to as a result of the accident is yours to keep. This article will explore what steps to take if you get in a car accident after filing a Chapter 7 bankruptcy.

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Frequently Asked Questions About Bankruptcy and Tax Refunds

It's pretty well-known that tax debts typically can't be discharged in bankruptcy. But what if you're getting a refund? This article answers some of the frequently asked questions about tax refunds and bankruptcy.

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What are the Arizona Bankruptcy Exemptions?

Arizona has opted out of the federal bankruptcy exemptions. If you’ve lived in Arizona for at least 2 years when your bankruptcy is filed, you have to use the Arizona exemption laws. This article explores the exemptions available under Arizona law.

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Filing bankruptcy while self-employed

Do you own your own business and are your own boss? Congratulations! You're living the American dream! Of course, if you're finding yourself in financial difficulties, the American dream of being self employed can feel a little bit like a nightmare. This article will explore the two most typical ways individuals own businesses, and how it impacts your options when it comes to getting lasting debt relief through a personal Chapter 7 bankruptcy.

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Everything You Need to Know About How Bankruptcy affects Credit Union Accounts

There are a lot of details to understand when you are deciding whether filing for bankruptcy is a good idea. If you are a member of a credit union, there are some specific things to consider that are unique to this type of organization. Keep reading to learn how bankruptcy affects credit union accounts.

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What is non-exempt equity?

What property you are allowed to keep and what you may be forced to sell or surrender when you file a Chapter 7 bankruptcy depends on how much non-exempt equity you have in the item. Let’s explore what this means for you, so you can choose the path to debt relief that makes the most sense for you.

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The trustee says I owe money/asset to the estate. What should I do?

What it means and what to do if a bankruptcy trustee says you owe money or an asset to the bankruptcy estate.

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Will I lose my personal injury settlement award if I file for bankruptcy?

Whether or not you can keep your personal injury settlement award when you file for bankruptcy depends on a number of different factors.

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Can I keep money I receive from a lawsuit in bankruptcy?

Yes, you can usually keep a personal injury award to the extent it is protected by exemptions, either federal exemptions or your state’s exemptions.

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Texas Bankruptcy Exemptions

The intent of bankruptcy is not to strip you of everything you own. Exemptions allow you to keep many, if not all, of of your belongings.

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Illinois Bankruptcy Exemptions

The intent of bankruptcy is not to strip you of everything you own. Exemptions allow you to keep many, if not all, of your belongings.

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Which states allow me to use the federal bankruptcy exemptions?

Find out which states allow filers to choose between their state's exemptions and the federal bankruptcy exemptions.

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Will my bankruptcy affect my child's 529 College Saving Plan?

Whether or not funds in your child's 529 plan are protected when you file bankruptcy depends on how long ago you deposited the funds in the account.

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Should I choose the federal or my state bankruptcy exemptions?

The exemptions you choose will play a big role in determining how much of your stuff the trustee can sell to repay your creditors. Most Upsolve users select the Federal exemptions, but the choice that is right for you will depend on your answers to two questions.

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What are bankruptcy exemptions?

Bankruptcy exemptions protect property after a bankruptcy filing. Filing for bankruptcy relief does not mean that you have to give up everything you own. The purpose of filing a bankruptcy case is to get debt relief. We explain how you can protect your property from a Chapter 7 bankrutpcy trustee.

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What are the Florida Bankruptcy Exemptions?

If you're a debtor filing for bankruptcy and you live in Florida, you'll be using the Florida bankruptcy exemptions to keep your property.

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What are the Federal Bankruptcy Exemptions?

There are both federal laws and state laws that apply to bankruptcy and each set of laws has its own bankruptcy exemptions. The federal government makes its federal bankruptcy exemptions available to anyone who files Chapter 7 bankruptcy regardless of what state they file in. But, each state has the right to restrict its residents to using the state exemptions, having “opted out” of the federal bankruptcy exemptions.

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What are the California Bankruptcy Exemptions?

If you're a debtor filing for bankruptcy and you live in California, you'll be using the California bankruptcy exemptions to keep your property.

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Can I Keep My Property If I File for Bankruptcy?

Most people who file for Chapter 7 bankruptcy end up keeping all their property. But that’s by no mean a given. Before filing for bankruptcy, it’s very important to know which exemptions will apply to your property and whether they can protect your property.

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What are the Georgia Bankruptcy Exemptions?

If you're a debtor filing for bankruptcy and you live in Georgia, you'll be using the Georgia bankruptcy exemptions to keep your property from your trustee.

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